Sprint Newsroom: Sprint Nextel Reports Third Quarter 2012 Results

Sprint Nextel Corporation has posted the following release to its Newsroom website:

Sprint Nextel Reports Third Quarter 2012 Results

OVERLAND PARK, Kan. (BUSINESS WIRE), October 25, 2012 - Sprint Nextel Corp. (NYSE: S) today reported wireless service revenues of nearly $7.3 billion during the quarter, an increase of nearly 6 percent year-over-year. Wireless service revenues for the Sprint platform grew 14 percent year-over-year driven by postpaid ARPU growth of $3.01 and continued subscriber growth.

The company reported a net loss of $767 million and a diluted net loss of $.26 per share for the third quarter of 2012 as compared to a net loss of $301 million and a diluted net loss of $.10 per share in the third quarter of 2011. Sprint's third quarter 2012 results include accelerated depreciation of $397 million, or negative $.13 per share (pre-tax), primarily related to Network Vision, including the expected shutdown of the Nextel platform.

The Sprint platform postpaid subscriber base grew for the tenth consecutive quarter, with net additions of 410,000 driven by a postpaid Nextel recapture rate of 59 percent and best ever third quarter churn. Sprint recorded approximately 1.5 million iPhone^® sales in the third quarter with 40 percent representing new customers. The company also surpassed 1 million LTE smartphones sold prior to the launch of iPhone 5.

"The Sprint platform performed well, with strong net subscriber additions, record third quarter postpaid and prepaid churn and robust revenue growth, contributing to Adjusted OIBDA* of $1.28 billion even as we continue to invest in Network Vision and position the company for future growth," said Dan Hesse, Sprint CEO. "As a result, we believe we will slightly exceed the top of the range of our recently increased Adjusted OIBDA* forecast."

NETWORK VISION HIGHLIGHTS

Sprint's Network Vision initiative continues to gain momentum. The number of sites that are either ready for construction or already underway has more than doubled in the last three months to more than 13,500. Leasing and zoning have been completed on more than 20,000 sites. To date nearly 4,300 sites are on-air and meeting speed and coverage enhancement targets. Recent weekly construction starts are up over 250 percent from the second quarter. Sprint now expects to bring 12,000 sites on air approximately one quarter later than originally planned.

As part of Network Vision, Sprint has launched 4G LTE in 32 cities and expects that 4G LTE will be available in more than 115 additional cities in the coming months. Sprint has launched or announced 13 4G LTE devices to date. Sprint launched Motorola PHOTON™ Q 4G LTE and Samsung Galaxy Victory™ 4G LTE in addition to iPhone 5 in the third quarter. Earlier this month Sprint announced the upcoming availability of LG Optimus G™, LG Mach™, Samsung Galaxy Note^® II and Samsung Galaxy Tab^® 2 10.1.

In the third quarter, Sprint nearly surpassed 1.2 million Sprint^® Direct Connect^® push-to-talk devices sold, which contributed to the strong recapture rate of Nextel subscribers on the Sprint platform. The company has shut down power and disconnected backhaul to most of the 9,600 Nextel sites taken off air and is realizing the related savings. The Nextel platform shutdown remains on pace for the middle of 2013.

LIQUIDITY

During the third quarter, Sprint raised additional financing of $1.5 billion and retired $1.5 billion of debt maturities including $473 million of 2013 maturities and $1 billion of 2015 maturities. Sprint's next scheduled debt maturities include $317 million due in 2013 and approximately $1.4 billion of total maturities in 2014. As of September 30, 2012, the company's liquidity was approximately $7.5 billion consisting of $6.3 billion in cash, cash equivalents and short-term investments and $1.2 billion of undrawn borrowing capacity available under its revolving bank credit facility. Additionally, the company borrowed $77 million of available funding under the equipment financing credit facility, reducing the remaining undrawn availability to $923 million. Sprint generated $628 million of net cash provided by operating activities and negative Free Cash Flow* of $487 million in the quarter.

CUSTOMER EXPERIENCE AND BRAND HIGHLIGHTS

Third-party studies continue to confirm Sprint offers the industry's best customer experience. Sprint earned J.D. Power and Associates' top ranking – for the third straight time – for purchase experience among full-service wireless carriers. Sprint also received the Nemertes 2012 PilotHouse award for MPLS Services, beating all rivals in customer service. Sprint's Virgin Mobile USA brand ranked highest in satisfaction for customer care with non-contract wireless service by J.D. Power and Associates. Sprint was also recognized for its innovative machine-to-machine (M2M) solutions in the transportation and home health care industries by Connected World Magazine and earlier this month was named to the magazine's annual list of the 100 most important and influential providers of M2M services. For the fourth straight year, Newsweek's annual Green Rankings has recognized Sprint as one of the greenest companies in the U.S., ranking the company third among the 500 largest publicly traded corporations. Sprint was also named the top U.S. wireless carrier on the 2012 Carbon Disclosure Project S&P 500 Climate Change Report for its leading carbon disclosure score and for the second consecutive year, the Dow Jones Sustainability Index named Sprint as a leader in sustainability.

Sprint launched a number of innovative products and services during the third quarter including Single Source Enablement, a turnkey set of wireless solutions and support enabling any business to become a wireless Mobile Virtual Network Operator (MVNO). Sprint also began offering Microsoft Office 365 to small and mid-sized businesses to bring organizations new ways to enhance productivity, reduce costs and collaborate with customers and partners while also extending the cloud-based communication tools to mobile workforces. In October, Sprint launched Pinsight Media+™, a new advertising service that gives advertisers the power to reach consumers on their mobile device in a more personalized way. Finally, the Samsung Galaxy family of devices was introduced to Sprint's prepaid brand Virgin Mobile with Samsung Galaxy Reverb™ and Boost Mobile also launched the award-winning Samsung Galaxy S^® II 4G.

CONSOLIDATED RESULTS

TABLE 1: Selected Consolidated Financial Data (Unaudited)
(Millions, except per share data)
		Quarter To Date											Year To Date
Financial Data			9/30/12				9/30/11			% ?				9/30/12				9/30/11			% ?
Net operating revenues		$	8,763			$	8,333			5	%		$	26,340			$	24,957			6	%
Operating (loss) income		$	(231	)		$	208			NM			$	(1,115	)		$	546			NM
Adjusted OIBDA*		$	1,279			$	1,402			(9	) %		$	3,943			$	4,230			(7	) %
Adjusted OIBDA margin*			16.0	%			18.2	%						16.4	%			18.4	%
Net loss (1)		$	(767	)		$	(301	)		NM			$	(3,004	)		$	(1,587	)		(89	) %
Diluted net loss per common share (1)		$	(0.26	)		$	(0.10	)		NM			$	(1.00	)		$	(0.53	)		(89	) %
Capital expenditures (2)		$	1,489			$	760			96	%		$	3,447			$	1,955			76	%
Net cash provided by operating activities		$	628			$	608			3	%		$	2,783			$	2,602			7	%
Free Cash Flow*		$	(487	)		$	(273	)		78	%		$	(140	)		$	172			NM

• Consolidated net operating revenues of $8.8 billion for the quarter were 5 percent higher than in the third quarter of 2011 and 1 percent lower than the second quarter of 2012. The quarterly year-over-year improvement was primarily due to higher wireless service and equipment revenues, partially offset by a reduction in wireline revenues. The decline sequentially was primarily due to lower wireline revenue.
• Operating loss was $231 million compared to operating income of $208 million for the third quarter of 2011 and an operating loss of $629 million for the second quarter of 2012. The year-over-year change was driven by items identified below in Adjusted OIBDA* and by accelerated depreciation expense associated with the expected shutdown of the Nextel platform. In addition to the items identified in Adjusted OIBDA*, the sequential improvement in operating loss was driven by a reduction in depreciation expense as a result of Nextel platform assets that were fully depreciated during the second quarter of 2012 and lease exit costs recognized during the second quarter, each associated with the Nextel platform cell sites taken off air during the second quarter of 2012.
• Adjusted OIBDA* was $1.28 billion for the quarter, compared to $1.40 billion for the third quarter of 2011 and $1.45 billion in the second quarter of 2012. The quarterly year-over-year decrease in Adjusted OIBDA* was primarily due to higher wireless equipment net subsidy and estimated Network Vision related expenses, partially offset by higher wireless service revenues and lower cost of service. Sequentially, Adjusted OIBDA* decreased primarily as a result of higher equipment net subsidy expense.
• Capital expenditures⁽²⁾, excluding capitalized interest of $52 million, were $1.5 billion in the quarter, compared to $760 million in the third quarter of 2011 and $1.2 billion in the second quarter of 2012. Wireless capital expenditures were $1.4 billion in the third quarter of 2012, compared to $647 million in the third quarter of 2011 and $1 billion in the second quarter of 2012. During the quarter, the company invested $1.1 billion for Network Vision and approximately $195 million in capacity related to both legacy network and Network Vision equipment. Wireline capital expenditures were $60 million in the third quarter of 2012, compared to $36 million in the third quarter of 2011 and $79 million in the second quarter of 2012. Corporate capital expenditures were $53 million in the third quarter of 2012, compared to $77 million in the third quarter of 2011 and $67 million in the second quarter of 2012, primarily related to IT infrastructure to support our Wireless and Wireline businesses.
• Net cash provided by operating activities was $628 million for the quarter, compared to $608 million for the third quarter of 2011 and $1.2 billion for the second quarter of 2012.
• Free Cash Flow* was negative $487 million for the quarter, compared to a negative $273 million for the third quarter of 2011 and $209 million for the second quarter of 2012.

WIRELESS RESULTS

Wireless Customers

• The company served nearly 56 million customers at the end of the third quarter of 2012. This includes 32.1 million postpaid subscribers (29.8 million on the Sprint platform and 2.3 million on the Nextel platform), 15.4 million prepaid subscribers (14.6 million on the Sprint platform and 800,000 on the Nextel platform) and 8.4 million wholesale and affiliate subscribers, all of whom utilize the Sprint platform.
• The Sprint platform added 410,000 net postpaid customers during the quarter. The Nextel platform lost 866,000 net postpaid customers in the quarter. Sprint platform postpaid net additions and Nextel platform postpaid net subscriber losses include 516,000 net subscribers from the Nextel platform acquired on the Sprint platform.
• The company added 19,000 net prepaid subscribers during the quarter, which includes net additions of 459,000 prepaid Sprint platform customers, offset by net losses of 440,000 prepaid Nextel platform customers. Sprint platform prepaid net additions and Nextel platform prepaid net losses include 152,000 net subscribers from the Nextel platform acquired on the Sprint platform.
• For the quarter, the company reported net additions of 14,000 wholesale and affiliate subscribers (all of whom are on the Sprint platform) as a result of MVNOs reselling prepaid services.
• The credit quality of Sprint's end-of-period postpaid customers was 82 percent prime compared to approximately 83 percent for the year-ago period and flat as compared to the second quarter of 2012.

Sprint Platform Churn and Nextel Recapture

• For the quarter, the company reported Sprint platform postpaid churn of 1.88 percent, compared to 1.91 percent for the year-ago period and 1.69 percent for the second quarter of 2012. The sequential increase in Sprint platform postpaid churn was driven primarily by higher voluntary churn in the third quarter.
• 59 percent of total subscribers who left the postpaid Nextel platform during the period were recaptured on the postpaid Sprint platform as compared to 27 percent in the third quarter of 2011 and 60 percent in the second quarter of 2012.
• Approximately 10 percent of Sprint platform postpaid customers upgraded their handsets during the third quarter of 2012 compared to 8 percent for the year-ago period and 9 percent for the second quarter of 2012 (includes Nextel recaptures). The quarterly year-over-year increase in the Sprint platform postpaid device upgrade rate was impacted by upgrade eligibility changes introduced in 2011. The quarterly year-over-year and sequential increases were also impacted by new device launches and subscribers who left the Nextel platform and were acquired on the Sprint platform.
• Sprint platform prepaid churn for the third quarter was 2.93 percent, compared to 3.43 percent for the year-ago period and 3.16 percent for the second quarter of 2012. The quarterly year-over-year improvement in Sprint platform prepaid churn was a result of improvements in the Virgin Mobile, Boost and Assurance Wireless^® brands, including a larger percent of the subscriber base on Assurance Wireless. The sequential decrease in churn was primarily related to lower Assurance Wireless churn, partially offset by higher churn for the Boost brand. The year-over-year and sequential improvement in Assurance Wireless churn was primarily driven by a change in the recertification practices of subscribers due to new regulatory requirements that went into effect in the second quarter of 2012.

TABLE 2: Wireless Operating Statistics (Unaudited)
		Quarter To Date												Year To Date
			9/30/12				6/30/12				9/30/11				9/30/12				9/30/11
Net Additions (Losses) (in thousands)
Sprint platform:
Postpaid (a)			410				442				265				1,115				744
Prepaid (b)			459				451				839				1,780				3,394
Wholesale and affiliate			14				388				835				1,187				1,743
Total Sprint platform			883				1,281				1,939				4,082				5,881
Nextel platform:
Postpaid (a)			(866	)			(688	)			(309	)			(2,009	)			(1,003	)
Prepaid (b)			(440	)			(310	)			(354	)			(1,131	)			(1,389	)
Total Nextel platform			(1,306	)			(998	)			(663	)			(3,140	)			(2,392	)
Total retail postpaid net losses			(456	)			(246	)			(44	)			(894	)			(259	)
Total retail prepaid net additions			19				141				485				649				2,005
Total wholesale and affiliate net additions			14				388				835				1,187				1,743
Total Wireless Net (Losses) Additions			(423	)			283				1,276				942				3,489
End of Period Subscribers (in thousands)
Sprint platform:
Postpaid (a)			29,844				29,434				28,190				29,844				28,190
Prepaid (b)			14,608				14,149				11,929				14,608				11,929
Wholesale and affiliate			8,405				8,391				6,264				8,405				6,264
Total Sprint platform			52,857				51,974				46,383				52,857				46,383
Nextel platform:
Postpaid (a)			2,276				3,142				4,663				2,276				4,663
Prepaid (b)			830				1,270				2,353				830				2,353
Total Nextel platform			3,106				4,412				7,016				3,106				7,016
Total retail postpaid end of period subscribers			32,120				32,576				32,853				32,120				32,853
Total retail prepaid end of period subscribers			15,438				15,419				14,282				15,438				14,282
Total wholesale and affiliate end of period subscribers			8,405				8,391				6,264				8,405				6,264
Total End of Period Subscribers			55,963				56,386				53,399				55,963				53,399
Supplemental Data - Connected Devices
End of Period Subscribers (in thousands)
Retail postpaid			817				809				762				817				762
Wholesale and affiliate			2,542				2,361				1,956				2,542				1,956
Total			3,359				3,170				2,718				3,359				2,718
Churn
Sprint platform:
Postpaid			1.88	%			1.69	%			1.91	%			1.86	%			1.80	%
Prepaid			2.93	%			3.16	%			3.43	%			3.01	%			3.36	%
Nextel platform:
Postpaid			4.38	%			2.56	%			1.91	%			2.85	%			1.92	%
Prepaid			9.39	%			7.18	%			7.02	%			8.37	%			7.08	%
Total retail postpaid churn			2.09	%			1.79	%			1.91	%			1.96	%			1.82	%
Total retail prepaid churn			3.37	%			3.53	%			4.07	%			3.50	%			4.19	%
ARPU (c)
Sprint platform:
Postpaid		$	63.21			$	63.38			$	60.20			$	63.05			$	59.27
Prepaid		$	26.19			$	25.49			$	25.35			$	25.78			$	25.53
Nextel platform:
Postpaid		$	38.65			$	40.25			$	42.78			$	40.11			$	43.64
Prepaid		$	34.73			$	37.20			$	35.62			$	35.96			$	35.23
Total retail postpaid ARPU		$	61.18			$	60.88			$	57.65			$	60.64			$	56.83
Total retail prepaid ARPU		$	26.77			$	26.59			$	27.19			$	26.73			$	27.68
Nextel Platform Subscriber Recaptures
Subscribers (in thousands) (d):
Postpaid			516				431				103				1,175				340
Prepaid			152				143				141				432				572
Rate (e):
Postpaid			59	%			60	%			27	%			56	%			27	%
Prepaid			34	%			32	%			21	%			29	%			23	%

^(a) Postpaid subscribers on the Sprint platform are defined as retail postpaid subscribers on the CDMA network, including subscribers with PowerSource devices, and those utilizing WiMax and LTE technology. Postpaid subscribers on the Nextel platform are defined as retail postpaid subscribers on the iDEN network.

^(b) Prepaid subscribers on the Sprint platform are defined as retail prepaid subscribers who utilize CDMA and WiMax technology via our multi-brand offerings. Prepaid subscribers on the Nextel platform are defined as retail prepaid subscribers who utilize iDEN technology via our multi-brand offerings.

^(c) ARPU is calculated by dividing service revenue by the sum of the average number of subscribers in the applicable service category. Changes in average monthly service revenue reflect subscribers for either the postpaid or prepaid service category who change rate plans, the level of voice and data usage, the amount of service credits which are offered to subscribers, plus the net effect of average monthly revenue generated by new subscribers and deactivating subscribers.

^(d) Nextel Subscriber Recaptures are defined as the number of subscribers that deactivated service from the postpaid or prepaid Nextel platform, as applicable, during each period but remained with the Company as subscribers on the postpaid or prepaid Sprint platform, respectively. Subscribers that deactivate service from the Nextel platform and activate service on the Sprint platform are included in the Sprint platform net additions for the applicable period.

^(e) The Postpaid and Prepaid Nextel Recapture Rates are defined as the portion of total subscribers that left the postpaid or prepaid Nextel platform, as applicable, during the period and were retained on the postpaid or prepaid Sprint platform, respectively.

TABLE 3: Selected Wireless Financial Data (Unaudited) (Millions)
		Quarter To Date											Year To Date
Financial Data			9/30/12				9/30/11			% ?				9/30/12				9/30/11			% ?
Net operating revenues		$	8,042			$	7,516			7	%		$	24,059			$	22,381			8	%
Operating (loss) income		$	(281	)		$	131			NM			$	(1,293	)		$	244			NM
Adjusted OIBDA*		$	1,118			$	1,214			(8	) %		$	3,469			$	3,599			(4	) %
Adjusted OIBDA margin*			15.3	%			17.6	%						15.9	%			17.7	%
Capital expenditures (2)		$	1,376			$	647			NM			$	3,098			$	1,642			89	%

Wireless Service Revenues

• Wireless retail service revenues of $7.2 billion for the quarter represent an increase of nearly 5 percent compared to the third quarter of 2011 and flat compared to the second quarter of 2012. The quarterly year-over-year improvement was primarily due to higher postpaid ARPU as well as an increased number of net prepaid Sprint platform subscribers, partially offset by lower Nextel postpaid and prepaid subscribers.
• Wireless postpaid ARPU increased quarterly year-over-year from $57.65 to $61.18, while sequentially ARPU increased from $60.88 to $61.18. Quarterly year-over-year and sequential ARPU benefited from higher monthly recurring revenues primarily as a result of the premium data add-on charges for smartphones introduced since the first quarter of 2011.
• Prepaid ARPU of $26.77 for the quarter declined from $27.19 in the third quarter of 2011 and increased from $26.59 in the second quarter of 2012. The decline in the year-over-year period is a result of a greater mix of Assurance Wireless customers who on average have lower ARPU than the remainder of our prepaid subscriber base, partially offset by improvements in Boost and Virgin Mobile ARPU. The sequential increase was primarily driven by higher Virgin Mobile ARPU.
• Quarterly wholesale, affiliate and other revenues of $121 million increased by $57 million, compared to the year-ago period and decreased by $3 million sequentially. The increase in the year-over-year period is primarily related to growth in MVNOs reselling prepaid services.

Wireless Operating Expenses

• Total wireless net operating expenses were $8.3 billion in the third quarter, compared to $7.4 billion in the year-ago period and $8.7 billion in the second quarter of 2012.
• Wireless equipment net subsidy in the third quarter was approximately $1.6 billion (equipment revenue of $750 million, less cost of products of $2.4 billion), compared to approximately $1.2 billion in the year-ago period and approximately $1.5 billion in the second quarter of 2012. The quarterly year-over-year increase in net subsidy is primarily due to the launch of iPhone and 4G LTE devices, which on average carry a higher subsidy rate per handset as compared to other handsets. The sequential increase in net subsidy is primarily due to higher postpaid and prepaid handset sales and the launch of 4G devices on the prepaid Sprint platform, which on average carry a higher subsidy rate per handset as compared to other handsets.
• Wireless cost of service decreased approximately 3 percent year-over-year primarily due to lower service and repair and license and fees, partially offset by higher costs associated with increased data volume and Network Vision related expenses. Wireless cost of service decreased 1 percent sequentially due to savings related to Nextel platform sites taken off air, partially offset by seasonally higher service and repair and roaming expenses.
• Wireless SG&A expenses increased approximately 4 percent year-over-year and were flat sequentially. Quarterly year-over-year increases in sales and marketing expenses were partially offset by reductions in customer care expenses. Sales expenses increased year-over-year primarily due to iPhone point-of-sale discounts (subsidy) for devices directly sold by the manufacturer to indirect dealers in which Sprint does not take device title. Customer care expense declined year-over-year due primarily to lower call volumes.
• Wireless depreciation and amortization expense increased $294 million year-over-year and decreased $419 million sequentially. The year-over-year increase was primarily related to accelerated depreciation expense associated with the expected shutdown of the Nextel platform. The sequential decrease was primarily related to a decrease in accelerated depreciation expense as a result of Nextel platform assets that were fully depreciated in the second quarter of 2012.

WIRELINE RESULTS

TABLE 4: Selected Wireline Financial Data (Unaudited) (Millions)
		Quarter To Date											Year To Date
Financial Data			9/30/12				9/30/11			% ?				9/30/12				9/30/11			% ?
Net operating revenues		$	939			$	1,062			(12	) %		$	2,932			$	3,272			(10	) %
Operating income		$	52			$	76			(32	) %		$	175			$	300			(42	) %
Adjusted OIBDA*		$	158			$	184			(14	) %		$	468			$	622			(25	) %
Adjusted OIBDA margin*			16.8	%			17.3	%						16.0	%			19.0	%
Capital expenditures (2)		$	60			$	36			67	%		$	184			$	124			48	%

• Wireline revenues of $939 million for the quarter declined 12 percent year-over-year primarily as a result of an intercompany rate reduction based on current market prices for voice and IP services sold to the wireless segment as well as lower voice, data and IP volumes. Sequentially, third quarter wireline revenues declined nearly 6 percent, primarily as a result of lower voice rates and volume and lower IP volume.
• Total wireline net operating expenses were $887 million in the third quarter of 2012. Net operating expenses declined 10 percent year-over-year due to lower cost of service from continued declines in voice and IP volumes and improvement in SG&A expenses. Sequentially, net operating expenses decreased nearly 7 percent as a result of declines in cost of service.

Forecast

The company expects 2012 Adjusted OIBDA* to slightly exceed the high end of the previously stated forecast of between $4.5 billion and $4.6 billion. Within that Adjusted OIBDA* expectation, we continue to anticipate full year consolidated net service revenue growth of 4 to 6 percent (consolidated revenue less wireless equipment revenue). Sprint now expects full year capital expenditures of less than $6 billion in 2012, excluding capitalized interest.

TABLE 5: CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Millions, except per Share Data)
		Quarter To Date												Year To Date
			9/30/12				6/30/12				9/30/11				9/30/12				9/30/11
Net Operating Revenues		$	8,763			$	8,843			$	8,333			$	26,340			$	24,957
Net Operating Expenses
Cost of services			2,702				2,788				2,835				8,277				8,170
Cost of products			2,391				2,223				1,776				6,912				5,426
Selling, general and administrative			2,391				2,381				2,320				7,208				7,131
Depreciation and amortization			1,488				1,896				1,194				5,050				3,684
Other, net			22				184				-				8				-
Total net operating expenses			8,994				9,472				8,125				27,455				24,411
Operating (Loss) Income			(231	)			(629	)			208				(1,115	)			546
Interest expense			(377	)			(321	)			(236	)			(996	)			(724	)
Equity in losses of unconsolidated investments and other, net (3)			(112	)			(398	)			(261	)			(783	)			(1,261	)
Loss before Income Taxes			(720	)			(1,348	)			(289	)			(2,894	)			(1,439	)
Income tax expense			(47	)			(26	)			(12	)			(110	)			(148	)
Net Loss (1)		$	(767	)		$	(1,374	)		$	(301	)		$	(3,004	)		$	(1,587	)
Basic and Diluted Net Loss Per Common Share (1)		$	(0.26	)		$	(0.46	)		$	(0.10	)		$	(1.00	)		$	(0.53	)
Weighted Average Common Shares outstanding			3,003				3,000				2,996				3,001				2,994
Effective Tax Rate			-6.5	%			-1.9	%			-4.2	%			-3.8	%			-10.3	%
TABLE 6: NON-GAAP RECONCILIATION - NET LOSS TO ADJUSTED OIBDA* (Unaudited) (Millions)
		Quarter To Date												Year To Date
			9/30/12				6/30/12				9/30/11				9/30/12				9/30/11
Net Loss (1)		$	(767	)		$	(1,374	)		$	(301	)		$	(3,004	)		$	(1,587	)
Income tax expense			(47	)			(26	)			(12	)			(110	)			(148	)
Loss before Income Taxes			(720	)			(1,348	)			(289	)			(2,894	)			(1,439	)
Equity in losses of unconsolidated investments and other, net (3)			112				398				261				783				1,261
Interest expense			377				321				236				996				724
Operating (Loss) Income			(231	)			(629	)			208				(1,115	)			546
Depreciation and amortization			1,488				1,896				1,194				5,050				3,684
OIBDA*			1,257				1,267				1,402				3,935				4,230
Lease exit costs (4)			22				184				-				206				-
Gains from asset dispositions and exchanges (5)			-				-				-				(29	)			-
Asset impairments and abandonments (6)			-				-				-				18				-
Spectrum hosting contract termination, net (7)			-				-				-				(170	)			-
Access costs (8)			-				-				-				(17	)			-
Adjusted OIBDA*			1,279				1,451				1,402				3,943				4,230
Capital expenditures (2)			1,489				1,158				760				3,447				1,955
Adjusted OIBDA* less Capex		$	(210	)		$	293			$	642			$	496			$	2,275
Adjusted OIBDA Margin*			16.0	%			17.9	%			18.2	%			16.4	%			18.4	%
Selected item:
Deferred tax asset valuation allowance		$	308			$	554			$	121			$	1,210			$	654

TABLE 7: WIRELESS STATEMENTS OF OPERATIONS (Unaudited) (Millions)
		Quarter To Date												Year To Date
			9/30/12				6/30/12				9/30/11				9/30/12				9/30/11
Net Operating Revenues
Service revenue
Sprint platform:
Postpaid (a)		$	5,625			$	5,540			$	5,071			$	16,573			$	14,835
Prepaid (b)			1,127				1,064				878				3,207				2,396
Wholesale, affiliate and other			121				124				64				348				187
Total Sprint platform			6,873				6,728				6,013				20,128				17,418
Nextel platform:
Postpaid (a)			311				425				618				1,236				2,019
Prepaid (b)			108				161				269				457				943
Total Nextel platform			419				586				887				1,693				2,962
Equipment revenue			750				753				616				2,238				2,001
Total net operating revenues			8,042				8,067				7,516				24,059				22,381
Net Operating Expenses
Cost of services			2,256				2,279				2,332				6,824				6,616
Cost of products			2,391				2,223				1,776				6,912				5,426
Selling, general and administrative			2,277				2,266				2,194				6,854				6,740
Depreciation and amortization			1,377				1,796				1,083				4,737				3,355
Other, net			22				184				-				25				-
Total net operating expenses			8,323				8,748				7,385				25,352				22,137
Operating (Loss) Income		$	(281	)		$	(681	)		$	131			$	(1,293	)		$	244
Supplemental Revenue Data
Total retail service revenue		$	7,171			$	7,190			$	6,836			$	21,473			$	20,193
Total service revenue		$	7,292			$	7,314			$	6,900			$	21,821			$	20,380
(a) Postpaid subscribers on the Sprint platform are defined as retail postpaid subscribers on the CDMA network, including subscribers with PowerSource devices, and those utilizing WiMax and LTE technology. Postpaid subscribers on the Nextel platform are defined as retail postpaid subscribers on the iDEN network. (b) Prepaid subscribers on the Sprint platform are defined as retail prepaid subscribers who utilize CDMA and WiMax technology via our multi-brand offerings. Prepaid subscribers on the Nextel platform are defined as retail prepaid subscribers who utilize iDEN technology via our multi-brand offerings.
NON-GAAP RECONCILIATION		Quarter To Date												Year To Date
			9/30/12				6/30/12				9/30/11				9/30/12				9/30/11
Operating (Loss) Income		$	(281	)		$	(681	)		$	131			$	(1,293	)		$	244
Lease exit costs (4)			22				184				-				206				-
Gains from asset dispositions and exchanges (5)			-				-				-				(29	)			-
Asset impairments and abandonments (6)			-				-				-				18				-
Spectrum hosting contract termination, net (7)			-				-				-				(170	)			-
Depreciation and amortization			1,377				1,796				1,083				4,737				3,355
Adjusted OIBDA*			1,118				1,299				1,214				3,469				3,599
Capital expenditures (2)			1,376				1,012				647				3,098				1,642
Adjusted OIBDA* less Capex		$	(258	)		$	287			$	567			$	371			$	1,957
Adjusted OIBDA Margin*			15.3	%			17.8	%			17.6	%			15.9	%			17.7	%

TABLE 8: WIRELINE STATEMENTS OF OPERATIONS (Unaudited) (Millions)
		Quarter To Date												Year To Date
			9/30/12				6/30/12				9/30/11				9/30/12				9/30/11
Net Operating Revenues
Voice		$	399			$	426			$	474			$	1,242			$	1,440
Data			95				99				124				302				357
Internet			428				449				447				1,330				1,419
Other			17				21				17				58				56
Total net operating revenues			939				995				1,062				2,932				3,272
Net Operating Expenses
Costs of services and products			667				730				751				2,113				2,257
Selling, general and administrative			114				116				127				351				393
Depreciation			106				104				108				310				322
Other, net			-				-				-				(17	)			-
Total net operating expenses			887				950				986				2,757				2,972
Operating Income		$	52			$	45			$	76			$	175			$	300
NON-GAAP RECONCILIATION		Quarter To Date												Year To Date
			9/30/12				6/30/12				9/30/11				9/30/12				9/30/11
Operating Income		$	52			$	45			$	76			$	175			$	300
Access costs (8)			-				-				-				(17	)			-
Depreciation			106				104				108				310				322
Adjusted OIBDA*			158				149				184				468				622
Capital expenditures (2)			60				79				36				184				124
Adjusted OIBDA* less Capex		$	98			$	70			$	148			$	284			$	498
Adjusted OIBDA Margin*			16.8	%			15.0	%			17.3	%			16.0	%			19.0	%

TABLE 9: CONDENSED CONSOLIDATED CASH FLOW INFORMATION (Unaudited) (Millions)
														Year to Date
															9/30/12				9/30/11
Operating Activities
Net loss														$	(3,004	)		$	(1,587	)
Depreciation and amortization															5,050				3,684
Provision for losses on accounts receivable															413				370
Share-based compensation expense															57				51
Deferred income taxes															142				114
Equity in losses of unconsolidated investments and other, net (3)															783				1,261
Contribution to pension plan															(108	)			(124	)
Spectrum hosting contract termination, net (7)															(170	)			-
Other working capital changes, net															(479	)			(1,517	)
Other, net															99				350
Net cash provided by operating activities															2,783				2,602
Investing Activities
Capital expenditures (2)															(2,784	)			(2,221	)
Expenditures relating to FCC licenses															(152	)			(199	)
Change in short-term investments, net															(534	)			60
Investment in Clearwire															(128	)			-
Other, net															13				(10	)
Net cash used in investing activities															(3,585	)			(2,370	)
Financing Activities
Proceeds from debt and financings															3,577				-
Debt financing costs															(90	)			(3	)
Repayments of debt and capital lease obligations															(2,508	)			(1,655	)
Other, net															21				14
Net cash provided by (used in) financing activities															1,000				(1,644	)
Net Increase (Decrease) in Cash and Cash Equivalents															198				(1,412	)
Cash and Cash Equivalents, beginning of period															5,447				5,173
Cash and Cash Equivalents, end of period														$	5,645			$	3,761
TABLE 10: RECONCILIATION TO FREE CASH FLOW* (NON-GAAP) (Unaudited) (Millions)
		Quarter Ended												Year to Date
			9/30/12				6/30/12				9/30/11				9/30/12				9/30/11
Net Cash Provided by Operating Activities		$	628			$	1,177			$	608			$	2,783			$	2,602
Capital expenditures (2)			(1,073	)			(928	)			(818	)			(2,784	)			(2,221	)
Expenditures relating to FCC licenses, net			(45	)			(51	)			(71	)			(152	)			(199	)
Other investing activities, net			3				11				8				13				(10	)
Free Cash Flow*			(487	)			209				(273	)			(140	)			172
Debt financing costs			(33	)			(21	)			-				(90	)			(3	)
Increase (decrease) in debt and other, net			73				(1,002	)			(2	)			1,069				(1,655	)
Investment in Clearwire			-				-				-				(128	)			-
Other financing activities, net			14				4				5				21				14
Net (Decrease) Increase in Cash, Cash Equivalents and Short-Term Investments		$	(433	)		$	(810	)		$	(270	)		$	732			$	(1,472	)

TABLE 11: CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Millions)
			9/30/12				12/31/11
Assets
Current assets
Cash and cash equivalents		$	5,645			$	5,447
Short-term investments			684				150
Accounts and notes receivable, net			3,440				3,206
Device and accessory inventory			996				913
Deferred tax assets			75				130
Prepaid expenses and other current assets			771				491
Total current assets			11,611				10,337
Investments and other assets			1,862				2,609
Property, plant and equipment, net			13,108				14,009
Goodwill			359				359
FCC licenses and other			20,631				20,453
Definite-lived intangible assets, net			1,401				1,616
Total		$	48,972			$	49,383
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable		$	3,210			$	2,348
Accrued expenses and other current liabilities			4,427				4,143
Current portion of long-term debt, financing and capital lease obligations			310				8
Total current liabilities			7,947				6,499
Long-term debt, financing and capital lease obligations			20,994				20,266
Deferred tax liabilities			7,089				6,986
Other liabilities			4,443				4,205
Total liabilities			40,473				37,956
Shareholders' equity
Common shares			6,007				5,992
Paid-in capital			46,752				46,716
Accumulated deficit			(43,494	)			(40,489	)
Accumulated other comprehensive loss			(766	)			(792	)
Total shareholders' equity			8,499				11,427
Total		$	48,972			$	49,383
TABLE 12: NET DEBT* (NON-GAAP) (Unaudited) (Millions)
			9/30/12				12/31/11
Total Debt		$	21,304			$	20,274
Less: Cash and cash equivalents			(5,645	)			(5,447	)
Less: Short-term investments			(684	)			(150	)
Net Debt*		$	14,975			$	14,677

TABLE 13: SCHEDULE OF DEBT (Unaudited) (Millions)
								9/30/12
ISSUER				COUPON		MATURITY		PRINCIPAL
Sprint Nextel Corporation
Export Development Canada Facility (Tranche 2)				5.393%		12/15/2015		$	500
6% Senior Notes due 2016				6.000%		12/01/2016			2,000
9.125% Senior Notes due 2017				9.125%		03/01/2017			1,000
8.375% Senior Notes due 2017				8.375%		08/15/2017			1,300
9% Guaranteed Notes due 2018				9.000%		11/15/2018			3,000
7% Guaranteed Notes due 2020				7.000%		03/01/2020			1,000
7% Senior Notes due 2020				7.000%		08/15/2020			1,500
11.5% Senior Notes due 2021				11.500%		11/15/2021			1,000
9.25% Debentures due 2022				9.250%		04/15/2022			200
Sprint Nextel Corporation									11,500
Sprint Capital Corporation
6.9% Senior Notes due 2019				6.900%		05/01/2019			1,729
6.875% Senior Notes due 2028				6.875%		11/15/2028			2,475
8.75% Senior Notes due 2032				8.750%		03/15/2032			2,000
Sprint Capital Corporation									6,204
Nextel Communications Inc.
5.95% Senior Serial Redeemable Notes due 2014				5.950%		03/15/2014			1,170
7.375% Senior Serial Redeemable Notes due 2015				7.375%		08/01/2015			1,110
Nextel Communications Inc.									2,280
iPCS Inc.
First Lien Senior Secured Floating Rate Notes due 2013				2.570%		05/01/2013			300
Second Lien Senior Secured Floating Rate Notes due 2014				3.695%		05/01/2014			181
iPCS Inc.									481
EKN Secured Equipment Facility				2.030%		03/30/2017			77
Tower financing obligation				9.500%		01/15/2030			698
Capital lease obligations and other						2014 - 2022			77
TOTAL PRINCIPAL									21,317
Net premiums									(13	)
TOTAL DEBT								$	21,304

Supplemental information:

The Company had $1.2 billion of borrowing capacity available under our revolving bank credit facility as of September 30, 2012. Our revolving bank credit facility expires in October 2013.

In May 2012, certain of our subsidiaries entered into a $1.0 billion secured equipment credit facility to finance equipment-related purchases for Network Vision. The facility is equally divided into two consecutive tranches of $500 million, with the drawdown availability contingent upon Sprint's acquisition of equipment-related purchases from Ericsson, up to the maximum of each tranche, ending on May 31, 2013 and May 31, 2014, for the first and second tranche, respectively. Interest and principal are payable semi-annually with a final maturity of March 2017 for both tranches.

NOTES TO THE FINANCIAL INFORMATION (Unaudited)
(1)	Results include pre-tax, non-cash "Equity in losses of unconsolidated investments and other, net" of $112 million ($.04 per share), $398 million ($.13 per share) and $783 million ($.26 per share) in the third and second quarters and year-to-date periods of 2012, respectively, and $261 million ($.09 per share) and $1.3 billion ($.42 per share) in the third quarter and year-to-date periods of 2011.
(2)	Capital expenditures is an accrual based amount that includes the changes in unpaid capital expenditures and excludes capitalized interest. Cash paid for capital expenditures includes total capitalized interest of $52 million, $102 million and $269 million for the third and second quarters and year-to-date periods of 2012, respectively, and $103 million and $304 million for the third quarter and year-to-date periods of 2011, and can be found in the condensed consolidated cash flow information on Table 9 and the reconciliation to Free Cash Flow* on Table 10.
(3)	The second quarter of 2012 includes a non-cash impairment of $204 million to reflect a reduction of our investment in Clearwire to its estimated fair value at June 30, 2012.
(4)	For the second and third quarters of 2012, lease exit costs are primarily associated with taking Nextel platform sites off air.
(5)	For the year-to-date period of 2012, gains from asset dispositions and exchanges are primarily due to spectrum exchange transactions.
(6)	For the year-to-date period of 2012, asset impairments and abandonments relate to a change in our backhaul architecture in connection to our Network Vision design from microwave to a more cost effective fiber backhaul.
(7)	On March 16, 2012, we elected to terminate the arrangement with LightSquared LP and LightSquared, Inc. (LightSquared). As we have no future service obligations with respect to the arrangement with LightSquared, we recognized $236 million of the advanced payments as other operating income in the first quarter of 2012. As a result of the termination of the hosting agreement, we impaired capitalized costs specific to LightSquared's 1.6 GHz spectrum that the company no longer intends to deploy which totaled $66 million.
(8)	Favorable developments during the first quarter of 2012 relating to disagreements with local exchange carriers resulted in a reduction in expected access costs of $17 million.

*FINANCIAL MEASURES

Sprint Nextel provides financial measures determined in accordance with accounting principles generally accepted in the United States (GAAP) and adjusted GAAP (non-GAAP). The non-GAAP financial measures reflect industry conventions, or standard measures of liquidity, profitability or performance commonly used by the investment community for comparability purposes. These measurements should be considered in addition to, but not as a substitute for, financial information prepared in accordance with GAAP. We have defined below each of the non-GAAP measures we use, but these measures may not be synonymous to similar measurement terms used by other companies.

Sprint Nextel provides reconciliations of these non-GAAP measures in its financial reporting. Because Sprint Nextel does not predict special items that might occur in the future, and our forecasts are developed at a level of detail different than that used to prepare GAAP-based financial measures, Sprint Nextel does not provide reconciliations to GAAP of its forward-looking financial measures.

The measures used in this release include the following:

OIBDA is operating income/(loss) before depreciation and amortization. Adjusted OIBDA is OIBDA excluding severance, exit costs, and other special items. Adjusted OIBDA Margin represents Adjusted OIBDA divided by non-equipment net operating revenues for Wireless and Adjusted OIBDA divided by net operating revenues for Wireline. We believe that Adjusted OIBDA and Adjusted OIBDA Margin provide useful information to investors because they are an indicator of the strength and performance of our ongoing business operations, including our ability to fund discretionary spending such as capital expenditures, spectrum acquisitions and other investments and our ability to incur and service debt. While depreciation and amortization are considered operating costs under GAAP, these expenses primarily represent non-cash current period costs associated with the use of long-lived tangible and definite-lived intangible assets. Adjusted OIBDA and Adjusted OIBDA Margin are calculations commonly used as a basis for investors, analysts and credit rating agencies to evaluate and compare the periodic and future operating performance and value of companies within the telecommunications industry.

Free Cash Flow is the cash provided by operating activities less the cash used in investing activities other than short-term investments and equity method investments during the period. We believe that Free Cash Flow provides useful information to investors, analysts and our management about the cash generated by our core operations after interest and dividends, if any, and our ability to fund scheduled debt maturities and other financing activities, including discretionary refinancing and retirement of debt and purchase or sale of investments.

Net Debt is consolidated debt, including current maturities, less cash and cash equivalents, short-term investments and if any, restricted cash. We believe that Net Debt provides useful information to investors, analysts and credit rating agencies about the capacity of the company to reduce the debt load and improve its capital structure.

SAFE HARBOR

This release includes "forward-looking statements" within the meaning of the securities laws. The words "may," "could," "should," "estimate," "project," "forecast," "intend," "expect," "anticipate," "believe," "target," "plan," "providing guidance," and similar expressions are intended to identify information that is not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future — including statements relating to network performance, subscriber growth, and liquidity, and statements expressing general views about future operating results — are forward-looking statements. Forward-looking statements are estimates and projections reflecting management's judgment based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. With respect to these forward-looking statements, management has made assumptions regarding, among other things, development and deployment of new technologies; efficiencies and cost savings of multimode technologies; customer and network usage; customer growth and retention; service, coverage and quality; availability of devices; the timing of various events and the economic environment. Sprint Nextel believes these forward-looking statements are reasonable; however, you should not place undue reliance on forward-looking statements, which are based on current expectations and speak only as of the date when made. Sprint Nextel undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our company's historical experience and our present expectations or projections. Factors that might cause such differences include, but are not limited to, those discussed in the company's Annual Report on Form 10-K for the year ended December 31, 2011 filed with the U.S. Securities and Exchange Commission, which are incorporated herein by reference and when filed, our Form 10-Q for the quarter ended September 30, 2012. You should understand that it is not possible to predict or identify all such factors. Consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.

Clearwire's third quarter 2012 results from operations have not yet been finalized. As a result, the amount reflected for Sprint's share of Clearwire's results of operations for the quarter ended September 30, 2012, is an estimate and, based upon the finalization of Clearwire's results, may need to be revised if our estimate materially differs from Clearwire's actual results. Changes in our estimate, if any, would affect the carrying value of our investment in Clearwire, net loss, basic and diluted net loss per common share, and comprehensive loss but would have no effect on Sprint's operating income, OIBDA*, Adjusted OIBDA* or consolidated statement of cash flows.

About Sprint Nextel

Sprint Nextel offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users. Sprint Nextel served nearly 56 million customers at the end of the third quarter of 2012 and is widely recognized for developing, engineering and deploying innovative technologies, including the first wireless 4G service from a national carrier in the United States; offering industry-leading mobile data services, leading prepaid brands including Virgin Mobile USA, Boost Mobile, and Assurance Wireless; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone. The American Customer Satisfaction Index rated Sprint No. 1 among all national carriers in customer satisfaction and most improved, across all 47 industries, during the last four years. Newsweek ranked Sprint No. 3 in its 2012 Green Rankings, listing it as one of the nation's greenest companies, the highest of any telecommunications company. You can learn more and visit Sprint at www.sprint.com or www.facebook.com/sprint and www.twitter.com/sprint.

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Sprint Newsroom: Sprint Extends Push-to-Talk Capabilities to More Phones With Downloadable Android Application

Sprint Nextel Corporation has posted the following release to its Newsroom website:

Sprint Extends Push-to-Talk Capabilities to More Phones With Downloadable Android Application

OVERLAND PARK, Kan. (BUSINESS WIRE), October 24, 2012 - Sprint (NYSE: S), the industry's push-to-talk pioneer and market leader, today announced the launch of Sprint^® Direct Connect^® Now, a downloadable Android application that enables push-to-talk capabilities on the Kyocera Rise and additional devices, including the LG Optimus Elite™, coming soon.

Sprint Direct Connect Now, based on Qualcomm Inc.'s proven push-to-talk technology platform, effectively extends Sprint's growing push-to-talk franchise – with more than 1 million Sprint Direct Connect customers – to a new market of users who want push-to-talk but may not want the Direct Connect "button" that comes with it. Sprint Direct Connect Now can be installed on the Kyocera Rise by accessing the Google Play store and searching for "Sprint Direct Connect Now."

Sprint Direct Connect Now key features:

• Interoperable with Nextel Direct Connect and Sprint Direct Connect
• Group Connect calls up to 21 participants
• Call alerts to notify others you want to talk without interrupting
• Convenient touchscreen controls
• Displays contact image for speaker
• Synchronizes contacts with device's address book
• Creates favorites for most contacted Direct Connect contacts

"Consumers and businesses alike have a tool in Sprint Direct Connect Now that can help mobilize their lives, their businesses, and their workforces – on select phones other than those in the Sprint Direct Connect portfolio," said Tom Roberts, vice president-Marketing. "At the same time, Sprint Direct Connect Now is the ideal complement to our growing portfolio of rugged, military spec Sprint Direct Connect handsets that our longtime push-to-talk customers have grown accustomed to – especially construction workers, manufacturers and emergency responders."

"Sprint Direct Connect Now expands access to next-generation push-to-talk functionality," said Michael Wallace, senior vice president and general manager of Qualcomm Internet Services. "This offering, leveraging Qualcomm's IP-based push-to-talk platform, enables functionality and device selection ideal for a broader base of consumers."

Sprint currently offers rugged Sprint Direct Connect handsets from Kyocera, including the DuraCore, DuraPlus and DuraXT. All three meet military specification 810G for dust, shock, vibration, extreme temperatures, blowing rain and immersion. Each comes with GPS navigation and can access 3G speeds on Sprint's broadband CDMA network.

The Sprint Direct Connect portfolio also includes the Motorola Admiral, a rugged 3G Android smartphone with touchscreen and QWERTY keyboard that is Wi-Fi-enabled and mobile hotspot capable.

Another milestone for Sprint Direct Connect

Sprint Direct Connect Now marks another major milestone for the Sprint push-to-talk franchise. The Sprint Direct Connect launch in October 2011 ushered in the next generation of PTT service from the company that pioneered push-to-talk. The service first offered broadband data capabilities, familiar push-to-talk features, rugged and reliable handsets, and a broadening push-to-talk coverage map.

Today, Sprint Direct Connect has matured into the industry's push-to-talk gold standard with:

• Triple the square miles of coverage compared to the company's legacy Nextel National Network
• Instant call setup time on domestic PTT calls
• International coverage to Latin American countries that most frequently use PTT service

About Sprint Nextel

Sprint Nextel offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users. Sprint Nextel served more than 56 million customers at the end of the second quarter of 2012 and is widely recognized for developing, engineering and deploying innovative technologies, including the first wireless 4G service from a national carrier in the United States; offering industry-leading mobile data services, leading prepaid brands including Virgin Mobile USA, Boost Mobile, and Assurance Wireless; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone. The American Customer Satisfaction Index rated Sprint No. 1 among all national carriers and most improved in customer satisfaction across all industries during the last four years. Newsweek ranked Sprint No. 3 in its 2012 Green Rankings, listing it as one of the nation's greenest companies, the highest of any telecommunications company. You can learn more and visit Sprint at www.sprint.com or www.facebook.com/sprint and www.twitter.com/sprint.

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Sprint Newsroom: Sprint Announces Plans to offer iPad mini and Fourth Generation iPad

Sprint Nextel Corporation has posted the following release to its Newsroom website:

Sprint Announces Plans to offer iPad mini and Fourth Generation iPad

OVERLAND PARK, Kan. (BUSINESS WIRE), October 23, 2012 - Sprint (NYSE: S) today announced that in the coming weeks it will offer iPad mini and fourth generation iPad. Sprint will offer these new iPads with a range of attractive data plans that will allow customers to connect to its 4G LTE network.

iPad mini, a completely new iPad design that is 23 percent thinner and 53 percent lighter than the third generation iPad, and features a stunning 7.9-inch display, Apple-designed dual-core A5 chip, ultrafast wireless performance* and an incredible 10-hours of battery life.** The fourth generation iPad has a gorgeous 9.7-inch Retina display, Apple-designed A6X chip with blazing fast performance, a new FaceTime HD camera and even faster Wi-Fi performance. Both iPad mini and fourth generation iPad come with iOS 6, the world's most advanced mobile operating system with over 200 new features.

For more information about iPad, please visit www.apple.com/ipad.

About Sprint Nextel

Sprint Nextel offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users. Sprint Nextel served more than 56 million customers at the end of the second quarter of 2012 and is widely recognized for developing, engineering and deploying innovative technologies, including the first wireless 4G service from a national carrier in the United States; offering industry-leading mobile data services, leading prepaid brands including Virgin Mobile USA, Boost Mobile, and Assurance Wireless; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone. The American Customer Satisfaction Index rated Sprint No. 1 among all national carriers and most improved in customer satisfaction across all industries during the last four years. Newsweek ranked Sprint No. 3 in its 2012 Green Rankings, listing it as one of the nation's greenest companies, the highest of any telecommunications company. You can learn more and visit Sprint at www.sprint.com or www.facebook.com/sprint and www.twitter.com/sprint.

* LTE is available through select carriers. Network speeds are dependent on carrier networks. Check with your carrier for details.
** Battery life depends on device settings, usage and other factors. Actual results vary.

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Sprint Newsroom: Sprint continues to pace M2M innovation with its open approach, solutions choice and ecosystem expansion across multiple high-growth segments

Sprint Nextel Corporation has posted the following release to its Newsroom website:

Sprint continues to pace M2M innovation with its open approach, solutions choice and ecosystem expansion across multiple high-growth segments

OVERLAND PARK, Kan. (BUSINESS WIRE), October 23, 2012 - With machine-to-machine (M2M) market growth accelerating from fast to blistering, Sprint (NYSE: S) is adding even greater impetus to its M2M leadership in 2012. Key actions year to date include:

• Continued development of Sprint's diverse M2M solutions portfolio;
• Further expansion of Sprint's extensive M2M ecosystem capabilities;
• Introduction of industry-first core competencies, both as a systems integrator for automotive in-vehicle communications systems, and providing end-to-end, turnkey usage-based insurance (UBI) solutions; and,
• Wide-reaching enhancement of Sprint's global M2M capabilities through its collaboration with Orange Business Services and other relationships around the world.

Telecom, media and technology experts at Analysys Mason predict the global market for M2M connections will grow to 2.1 billion devices in 2021, from 100.4 million devices in 2011.^[1]

Sprint reputation for innovation grows, as global M2M capabilities expand

"For more than a dozen years, Sprint has been at the forefront of M2M breakthroughs and has helped coordinate opportunities for developers and business partners to power their innovative M2M products on its network," said Matt Carter, president of Global Wholesale and Emerging Solutions -- Sprint. "The company is a technology leader by giving the customer the service they want, when and where they need it. This includes developing entirely new, industry-first core competencies as a systems integrator for the automotive industry and provider of turnkey insurance solutions."

Innovation: Sprint recently announced examples of how it teams with innovative companies on M2M solutions, such as VendScreen, a touch-and-swipe interface for vending machine companies; Live U, which offers a broadcast quality, video-over-cellular solution for live video transmissions; and how it uses Cernium's CheckVideo solution to meet the video surveillance needs of Georgetown County (S.C.) Water and Sewer District.

Accolades: This year Sprint has earned honors for its M2M execution from noted independent entities:

• A Gold Value Chain award was presented to Sprint, Pro-Transport-1 and Feeney Wireless in the transportation category by Connected World magazine in July 2012. Mobile Innovations LLC, Sprint, Telit Wireless Solutions and Connected Development won a Bronze Value Chain Award in the home health category.
• In September 2012, Connected World named Sprint to the 2013 CW 100 list of the most important and influential providers of M2M services. Sprint has received this annual recognition for nine consecutive years.

Global Capability: Sprint also is collaborating with multiple international carriers to address global customer requirements. One example is Orange Business Services, which helps to expands global M2M connectivity for Sprint customers across 180 countries. Businesses can more easily take their operation nearly anywhere in the world, reducing complexity by working with a single point of contact to provide a unified, cost-effective solution to meet domestic and international connectivity needs.

2012 marks significant milestones for Sprint's M2M strategy

Sprint has a sharp focus on launching solutions for high-growth opportunities, including automotive, usage-based insurance, transportation, retail, energy, security and healthcare. Major developments during the year include:

Automotive: Chrysler Group LLC and Sprint recently announced their collaboration to develop a new wireless in-vehicle connectivity experience by evolving Uconnect® Access to include a variety of new, easy-to-use connected features and services that are designed to help keep drivers focused on the primary driving task. Uconnect Access uses the Sprint Connected Vehicle Platform architecture and delivers built-in vehicle connectivity via embedded wireless technology. Sprint Velocity for Vehicle Manufacturers delivers an affordable, high-quality and customized end-to-end solution to reduce complexity and provide nimble mobile-enabled technology updates, which help generate greater customer loyalty. Uconnect debuts on the 2013 RAM 1500 and SRT Viper.

Usage-Based Insurance: In July, Sprint launched Integrated Insurance Solutions, an end-to-end UBI service designed specifically for the auto insurance industry. It gives insurance carriers the ability to offer customers personalized discounts based on their driving habits. The vehicle is fitted with a small device that easily plugs into the diagnostic port and captures vehicle information and driver behavior data which is transmitted over the Sprint wireless network. A cloud-based system collects, analyzes and scores driver behavior enabling insurance carriers to improve driver risk assessments, reduce costs and improve profitability. Esurance is the first major insurance carrier to offer a solution with Sprint.

Connected Transportation: Sprint has a rich history of serving the fleet and telematics needs of consumers and businesses with a variety of location, navigation and management solutions. Sprint offers a broad portfolio of M2M telematics solutions for business fleets and consumers that increase fuel and worker efficiencies and improve driver safety. Examples include:

• Fleet management services from leading solutions providers are a staple in the Sprint portfolio. These solutions provide businesses with real-time visibility and data for making better informed decisions for their mobile workforce to assist them in achieving increased operational efficiencies, the safety of their mobile workers, regulatory compliance and customer satisfaction.
• Car Connection® by Audiovox is a telematics solution that will utilize Sprint's wireless network in the U.S. Car Connection lets consumers monitor, manage and maintain vehicles' health, fuel usage reports, driving habits, location, and, through an optional technology, even restrict cell phone usage while driving.
• Sprint also offers Agnik's data analytics web-services and platforms including MineDrive™ for the auto insurance industry; MineCar™ targeted at the auto repair industry; MineFleet^® for fleet vehicles; and, Vyncs™ for monitoring family vehicles.

Retail: With the many innovations emerging to help the retail industry better serve its customers, Sprint is working with a variety of companies to power kiosks, digital signage and vending solutions, such as:

• AOpen America Inc., has recently tested its platforms to be compatible on Sprint's wireless network. This includes its Digital Engine line of media players and WarmTouch all-in-one interactive devices. Each has been certified with a broadband module, antenna and modem control software.
• Earlier this year, AVT Named Sprint as its preferred wireless connectivity provider for its automated retail and smart vending solutions.

Remote Monitoring: In addition, Sprint powers a variety of remote monitoring solutions that meet unique needs across the healthcare, security and smart grid/energy industries, including:

• Sprint teams with Metrum Technologies, LLC, Power Insight and Tollgrade Communications, Inc. to help electric utilities improve the efficiency of distribution and management systems, essentially making the smart grid smarter. Metrum's entire line of smart meters is available with Sprint wireless connectivity, and Tollgrade offers Medium Voltage (MV) sensors with Sprint wireless connectivity to provide fault detection and location, asset management, load monitoring and power quality information for utilities in urban and rural locations. Power Insight recently earned Sprint network certification to provide energy monitoring and control service gateway for residential, lite commercial building automation platforms and vending kiosks.
• As announced earlier this year, to provide enterprises, fleet owners, government agencies and other organizations with more choices in asset protection, Sprint has expanded its portfolio of products from Omnilink, an award-winning provider of location-based services (LBS) and platforms. The Omnilink Asset Tracking solution operates on the Sprint wireless networks and offers a unique, out-of-the box tool for tracking assets at risk for theft or damage.
• The Uplink CDMA Alarm Communicator powered by Sprint is an advanced M2M security solution delivers residential and commercial customers the confidence of using secure CDMA technology for their primary or back-up wireless alarm communications.
• IDEAL LIFE and Sprint unveiled a new cellular pod that will make it easier than ever for users to manage wellness and monitor chronic conditions remotely. The pod debuted earlier this year and uses M2M communication to share information over Sprint's wireless network.

Sprint's open approach to platform providers

For many developers and innovators, the end-to-end process of bringing an embedded device or application to market can be daunting. There are a number of companies that offer a wide variety of managed services and can support them through the entire process -- from deployment to lifecycle management to customer experience. Unlike competitors, Sprint works with several platform providers in order to be certain it can meet the varied needs of its customers and help them quickly and cost-effectively bring their ideas from concept to market. Examples include:

• M2M DataSmart, with which Sprint teams to target entrepreneurial start-ups, traditional brick-and-mortar OEMs and virtual service provider companies to take an idea from concept to completion and enter the lucrative M2M arena to drive the future of cellular data solutions. M2M DataSmart provides volume pricing on unit one, with simple month-to-month customer agreements, no early termination fees and access to its M2M device management/usage portal, providing network coverage tools, device launch features, and easy engagement processes – everything an emerging M2M company needs to get started. M2M DataSmart makes M2M simple.
• Modus Group, LLC develops a variety of wireless and software solutions, and offers full-service account management to corporate enterprise, education, public service, and general business sectors. Modus specializes in wireless device management and procurement solutions, usage-based insurance and fleet management solutions, as well as wireless wide area networking services, including digital screen media solutions. These solutions provide customers with the tools to deliver quality service, manage their devices, and collect revenues faster. With more than 15 years of nationwide sales and support services to the telecommunications industry, Modus' sales team will customize and tailor solutions to meet individual needs.
• Wyless' resilient platform provides secure, reliable communications with wireless devices in over 120 countries. Powerful management tools offer real-time reporting and control over all devices connected to the network. Wyless delivers a comprehensive suite of managed services with unrivalled expertise, professional support and competitive pricing to enable customers and partners to deploy M2M applications and services faster, cheaper and more effectively.

Sprint also teams with Aeris and Numerex for Direct Communications Services (DCS).

About the Sprint Emerging Solutions Group

Sprint is at the forefront of this wireless industry revolution, teaming with and supporting a large and diverse portfolio of innovative companies to create smarter wireless solutions that change the way people work and live. Sprint offers a hands-on, interactive lab in Burlingame, Calif., where ideas, knowledge and technology unite to produce wirelessly enabled M2M concepts and products. The Sprint Command Center allows businesses with Sprint wireless-connected products the ability to manage, activate and deactivate each device via a Web-based portal. To learn more about Sprint's M2M offerings, visit www.sprint.com/m2m.

Sprint Network Leadership

The Network Vision initiative is designed to enhance customers' network experience with faster data speeds, improved voice quality and easier connectivity. Sprint expects the Network Vision improvements to be mostly complete by the end of 2013.

About Sprint Nextel

Sprint Nextel offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users. Sprint Nextel served more than 56 million customers at the end of the second quarter of 2012 and is widely recognized for developing, engineering and deploying innovative technologies, including the first wireless 4G service from a national carrier in the United States; offering industry-leading mobile data services, leading prepaid brands including Virgin Mobile USA, Boost Mobile, and Assurance Wireless; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone. The American Customer Satisfaction Index rated Sprint No. 1 among all national carriers in customer satisfaction and most improved, across all 47 industries, during the last four years. Newsweek ranked Sprint No. 3 in its 2011 Green Rankings, listing it as one of the nation's greenest companies, the highest of any telecommunications company. You can learn more and visit Sprint at www.sprint.com or www.facebook.com/sprint and www.twitter.com/sprint.

^[1] Source: Analysys Mason, M2M device connections, revenue and ARPU: worldwide forecast 2011-2021; May 2012

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Sprint Newsroom: Sprint Announces Closing of $3.1 Billion Convertible Bond

Sprint Nextel Corporation has posted the following release to its Newsroom website:

Sprint Announces Closing of $3.1 Billion Convertible Bond

OVERLAND PARK, Kan. (BUSINESS WIRE), October 22, 2012 - Sprint Nextel Corp. (NYSE: S) announced today the closing of its previously announced convertible bond sale to Starburst II, Inc., a wholly-owned subsidiary of SOFTBANK CORP., pursuant to which Starburst II agreed to purchase from Sprint a bond in the principal amount of $3.1 billion in connection with the proposed strategic combination of Sprint and SOFTBANK. Subject to the provisions of the bond purchase agreement, the bond is convertible into an aggregate of 590,476,190 shares of Sprint common stock, or approximately 19.65% of the current outstanding shares. If not earlier converted, principal and any accrued but unpaid interest under the bond will be due and payable on October 15, 2019. The principal balance of the bond will bear interest at 1.0% per annum, with interest payable semi-annually in arrears on April 15 and October 15, beginning on April 15, 2013.

Additional Information and Where to Find It

In connection with the proposed strategic combination, Starburst II plans to file with the SEC a Registration Statement on Form S-4 that will include a proxy statement of Sprint, and that also will constitute a prospectus of Starburst II. Sprint will mail the proxy statement/prospectus to its stockholders. INVESTORS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION. The proxy statement/prospectus, as well as other filings containing information about Sprint, SoftBank and Starburst II, will be available, free of charge, from the SEC's web site (www.sec.gov). Sprint's SEC filings in connection with the transaction also may be obtained, free of charge, from Sprint's web site (www.sprint.com) under the tab "About Us – Investors" and then under the heading "Documents and Filings – SEC Filings," or by directing a request to Sprint, 6200 Sprint Parkway, Overland Park, Kansas 66251, Attention: Shareholder Relations or (913) 794-1091. Starburst II's SEC filings in connection with the transaction (when filed) also may be obtained, free of charge, by directing a request to SoftBank, 1-9-1 Higashi-Shimbashi, Minato-ku, Tokyo 105-7303, Japan; telephone: +81.3.6889.2290; e-mail: ir@softbank.co.jp.

Participants in the Merger Solicitation

The respective directors, executive officers and employees of Sprint, SoftBank, Starburst II and other persons may be deemed to be participants in the solicitation of proxies in respect of the transaction. Information regarding Sprint's directors and executive officers is available in its Annual Report on Form 10-K for the year ended December 31, 2011. Other information regarding the interests of such individuals as well as information regarding SoftBank's and Starburst II's directors and executive officers will be available in the proxy statement/prospectus when it becomes available. These documents can be obtained free of charge from the sources indicated above. This communication shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended (the "Act").

The bond has not been registered under the Act or the securities laws of any other place and may not be offered or sold in the United States absent registration or an applicable exemption therefrom.

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Sprint Newsroom: Sprint Ranks #3 on Newsweek Magazine’s Green Rankings

Sprint Nextel Corporation has posted the following release to its Newsroom website:

Sprint Ranks #3 on Newsweek Magazine's Green Rankings

OVERLAND PARK, Kan. (BUSINESS WIRE), October 22, 2012 - For the fourth straight year, Newsweek's annual Green Rankings has recognized Sprint Nextel [NYSE:S] as one of the greenest companies in the United States, ranking the company third among the 500 largest publicly traded corporations. Sprint also ranked #3 in 2011, up from #15 in 2009 and #6 in 2010.

Sprint's inclusion on the list is based on the carrier's 2011 performance in such areas as greenhouse gas emissions, waste reduction and management of natural resources. Today's Newsweek announcement also coincides with the release of Sprint's annual Corporate Responsibility Performance Summary, which provides greater detail on how the company, the only wireless carrier to crack the top 25, continues to advance its environmental business practices and policies.

"It's a significant accomplishment for the employees of Sprint that Newsweek has once again recognized our sustainability efforts. Our commitment to 'doing the right thing' is an integral part of our long-term plan to reduce costs, drive revenue and increase customer loyalty," said Sprint CEO Dan Hesse. "Last year we continued our sustainability journey by improving performance against our environmental goals and establishing an external stakeholder advisory panel."

Newsweek's Green Rankings thoroughly evaluate the environmental performance of the largest publicly traded companies in the United States and those worldwide, and are based on a number of criteria, including environmental impact, environmental management, and environmental disclosure collected by leading environmental research providers Trucost and Sustainalytics. Sprint's performance in these areas – in addition to others – are also illustrated in the company's Corporate Responsibility Performance Summary. Notable achievements from the 2011 Performance Summary include:

Greenhouse Gas Emissions

Sprint has the most aggressive greenhouse gas (GHG) emission-reduction goals of any U.S. wireless carrier and was the first to publicly announce an absolute emission reduction goal. To date, the company is halfway to its goal of a 20 percent absolute emission reduction by 2017. In 2011, Sprint achieved an absolute emissions reduction of 3.25 percent year-over-year with a 31 percent year-over-year reduction in emissions intensity – milestones reached through the introduction of more-efficient network equipment as part of Network Vision, an increase in renewable energy purchases, energy efficiency improvements at its data centers, and a shift to more fuel-efficient SmartWay certified fleet vehicles.

Sprint's GHG reduction successes and reporting transparency have been recognized by the Dow Jones Sustainability Index and the Carbon Disclosure Project and are especially notable because they occurred during a period of significant data traffic growth and the build-out of Sprint's new high-performing LTE network.

Electronic Waste Reduction

Sprint was the first and continues to be the only U.S. wireless carrier to outline specific commitments that address electronic waste (e-waste) holistically by focusing on the full lifecycle of the electronics it buys and sells. Its Electronics Stewardship Policy, developed with guidance from BSR, Basel Action Network and ABI Research, publicly states Sprint's pledge to responsibly recycle electronic scrap while striving to boost equipment recycling and reuse. To date, the carrier's groundbreaking phone trade-in program, Sprint Buyback, and other wireless device recycling programs, have collected more than 40 million devices (over 5 million this year alone), while putting more than $75 million back in customers' pockets. Sprint's device take back programs have also supported bottom line objectives, helping the company avoid more than $1 billion in cost through reuse and recycling.

Sustainable Devices

The carrier's relationship with Underwriters Laboratory Environment (ULE) led to the creation of the first environmental standard for wireless mobile phones: ULE 110, which was launched in early 2011. The ULE 110 standard sets product guidelines in manufacturing and operations, performance, energy management, sustainable innovation and packaging. In May 2011, Sprint launched Samsung Replenish, which was the first wireless device in the United States to receive ULE 110 certification. Sprint has since launched seven more Platinum-certified devices and continues to lead the industry by offering more devices with eco-friendly features than any other wireless carrier in the United States.

At the beginning of 2012, Sprint announced that all devices it sells must go through ULE 110 assessment. The carrier's newly updated environmental vendor scorecard also places new emphasis on devices that are easily repairable and meet more aggressive packaging requirements – changes that will help reduce Sprint's environmental impact and also reduce repair and shipping costs. Today, Sprint has achieved ULE 110 certification for more than 80 percent of the carrier's current device lineup.

Sprint's commitment to sustainability as a core part of its business strategy continues to receive recognition. Earlier this year, the carrier was named No. 4 – and the only wireless provider – on the U.S. Environmental Protection Agency's (EPA) Top 20 Technology & Telecom list of green power users within the sector. This summer, Sprint was recognized by independent analyst firm Verdantix as the top U.S. wireless provider for corporate sustainability performance. For the last two years, Sprint Buyback has been named the best buyback program in the industry by Compass Intelligence based on an overall score among national carriers.

About Sprint Nextel

Sprint Nextel offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users. Sprint Nextel served more than 56 million customers at the end of the second quarter of 2012 and is widely recognized for developing, engineering and deploying innovative technologies, including the first wireless 4G service from a national carrier in the United States; offering industry-leading mobile data services, leading prepaid brands including Virgin Mobile USA, Boost Mobile, and Assurance Wireless; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone. The American Customer Satisfaction Index rated Sprint No. 1 among all national carriers and most improved in customer satisfaction across all industries during the last four years. Newsweek ranked Sprint No. 3 in its 2012 Green Rankings, listing it as one of the nation's greenest companies, the highest of any telecommunications company. You can learn more and visit Sprint at www.sprint.com or www.facebook.com/sprint and www.twitter.com/sprint.

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Sprint Newsroom Notification: Assurance Wireless Provides Cell Phones and Wireless Service to Aid Idaho Residents Facing Economic Hardship

Sprint Nextel Corporation has posted the following release to its Newsroom website:

The following is new content from Sprint Newsroom:

Assurance Wireless Provides Cell Phones and Wireless Service to Aid Idaho Residents Facing Economic Hardship

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